Bank Nifty 11th Jan 2016
Bank Nifty Minor Trend is down / bearish. Bank Nifty Major Trend is Neutral. As per our Indian Stock Market analysis / Bank Nifty Prediction we do not see Bank Nifty outperforming the broader Indian Stock markets in fact, most of the Banking Stock will be underperforming the benchmark Nifty 50 hence on all rise, we recommend to exit this sector totally both private sector banking and public sector banking stocks must be totally voided in your portfolio. As we have been saying / predicting that overall banks will continue to underperform and we do not see that trend changing at least for now.
If we take a closer look at the structure and charts of Banking stocks all of them baring 1 or maybe 2 of them have been consistently making fresh lows on accelerated volume and in addition to that all pullbacks are ending in typical lower tops. We have been guiding in the past as well that if any stock / index needs to outperform or move higher the basic chart structure must make higher tops and higher bottom when lower tops and lower bottoms are consistently made on accelerated volumes that are a sure sign of massive problems for the sector and stocks within that sector.
Q3FY16 numbers will begin the process of showing how bad the loan books are and how bad the asset quality of these so called well managed private sector banks also are, the reality is that we expect massive issues to start coming to the surface in the coming time and this will put adverse pressure on the stock prices. Hence we maintain our recommendation that totally avoid this sector at least for the time being. To add to the problems of the banks, especially icici bank and Axis Bank payment wallets will be eating into their retail banking margins and we will begin seeing the impact of these shortly.
Bank Nifty support and resistance for tomorrow 11th Jan 2016 is at 15960 and 16351
Avoid this sector totally and switch over to Bajaj Hindustan, EID Parry and Renuka Sugar.
Good Trading To You!